NewSat was an independent satellite communications provider in Australia.[2] Its satellites, VSATs and teleports provided coverage of 75% of the Earth’s surface. NewSat was founded on 28 March 1987, then named as Yalfaga.[3] Its name was later changed to Browns Creek Gold[4] and then Australian Environmental Resources. In 1999, the company was purchased by NewSat's CEO, Adrian Ballintine, and renamed MultiEmedia.com (later just MultiEmedia).[5] With the help of Microsoft co-founder Paul Allen owning 3% and Steve Vizard on the board,[6] it became a profitable web development company, developing the websites for Thrifty Car Rental, Hamilton Island and Nissan Australia.[7] It also sold its own in-house products, such as ZoneStudio, a web development tool, and IntraZone, an early SharePoint-like intranet application.[8]
| Company type | Public company |
|---|---|
| Industry | Satellite communication |
| Founder | Adrian Ballintine |
| Defunct | 2015 |
| Fate | Administration |
| Headquarters | |
Key people | Adrian Ballintine (CEO) |
| Revenue |  US$39.3 million (2013)[1] |
| US$10.449 million (2013)[1] | |
| Total assets | US$124.655 million (2013)[1] |
| Total equity | US$206.430 million (2013)[1] |
It survived the dotcom crash, and with the purchase of New Skies Networks and its teleport facilities in Adelaide and Perth in 2005,[9] it evolved into a fully-fledged satellite communications company, changing its name to NewSat on 1 September 2006.[10] Most of NewSat's customers were located in Australia, the Middle East and Africa. With the withdrawal of combat troops in Afghanistan and with the Australian mining boom winding down, the services for NewSat's teleport business started to wane. Having made a $39.7 million loss in the second half of 2014, and with $300 million in outstanding loan repayments, NewSat was placed in administration in mid-April 2015.[11] Over the next few months, as funding difficulties ensued, its contracts with Lockheed Martin and Arianespace were terminated,[12] and its main asset was sold to SpeedCast Australia Pty Limited.[13]
Jabiru
editWith Jabiru, NewSat was to be Australia's first independently owned satellite operator to manage a fleet of commercial Ku- and Ka-band satellites. Its Jabiru-1 Ka-band satellite was scheduled to take off in 2016 and would have catered to mobile communications carriers and private and public organizations across the Middle East, Africa, Asia and Australia.[14]
On 8 December 2011, NewSat and Lockheed Martin entered into a fixed-price contract for the design, manufacture, testing and on‐ground delivery of Jabiru‐1, and its related launch mission operations. Construction of Jabiru‐1 began in January 2012 at Lockheed Martin’s Newtown, Pennsylvania facility, and was scheduled to be available for shipment to the launch site at Centre Spatial Guyanais near Kourou, French New Guinea by 25 March 2016. The launch window for Jabiru‐1 by Arianespace was scheduled for May 2016.[15]
On 14 June 2012, the Export–Import Bank of the United States approved a direct loan of US$281 million (later increased to US$300.5 million) to Jabiru Satellite Limited (a wholly owned subsidiary of NewSat), with a guarantee by Compagnie Française d'Assurance pour le Commerce Extérieur (COFACE) and a stand-by facility from the British Standard Chartered Bank.
In mid-February 2014, with construction underway of the Jabiru-1 satellite, NewSat had paid Lockheed Martin close to US$170 million, out of an expected total cost of US$268 million.[16] The total project cost was expected to be US$600 (AU$664 million), including US$116 million for the rocket to place the satellite in orbit in the second half of 2015. At that time, NewSat confirmed that 18% of the capacity of the satellite had already been sold, at an estimated value of AU$644 million.[16]
Funding issues
editIn early August 2014, NewSat got a conditional waiver over alleged breaches of financial facilities to continue with the Jabiru-1 project. At that time, it was expected that the satellite would be assembled in late 2014 and tested in 2015.[17] On 16 December 2014,[18] Lockheed Martin, the Jabiru-1 satellite builder, issued NewSat a default notice due to a defaulted payment of US$21 million (AU$26.5 million); giving a period of up to 90 days to make payments without further impact.[19] Subsequently, Lockheed Martin issued a termination notice on 22 January 2015, and on 25 February 2015, Arianespace also issued default notices due to overdue payments for the Launch Services Agreement, totaling over US$42 million.
In late March 2015, NewSat requested a trading halt due to ongoing issues with project financing, which would remain in place until negotiations with US lenders were completed.[20] On 8 April 2015, NewSat announced that "COFACE Lender Group" would not support the waiver and not advance funds. This represents US$160 million (AU$209 million) lost, requiring an additional US$70 million in capital that was needed to be raised to keep the project alive. In mid-April 2015, NewSat was placed into administration to resolve the troubled financial situation and save the project; at the same time, a temporary order was issued in the US to keep the construction contracts with Lockheed Martin and Arianespace.[21] With funding difficulties continuing, Lockheed Martin terminated the manufacturing agreement later that month, taking ownership of the half-constructed satellite, and Arianespace, the launcher provider, terminated the launch services agreement on 4 August 2015.[22] On 29 May 2015, the receivers terminated Mr Adrian Ballintine’s role as chief executive officer by way of redundancy.[23] When the receivers found no buyers for the remaining assets, the company was finally liquidated in the final months of 2015.[24]
In August 2016, it was revealed on the current affairs program Four Corners that NewSat had been the victim of foreign hackers. Daryl Peter, the former IT manager, said, “Newsat had been hacked and not just by teenagers in the basement or anything like that. Whoever was hacking us was very well-funded, very professional, very serious hackers.”[25]
In late January 2017, the receivers McGrathNicol filed an action in the Federal Court of Australia seeking damages of AU$270 million against former managing director Adrian Ballintine and former chairman Richard Green, alleging that they both breached their directors' duties.[26]
References
edit- ^ a b c d "ANNUAL REPORT 2013" (PDF). NewSat. 30 September 2013. pp. 3, 18, 19. Retrieved 25 June 2014.
- ^ "NewSat, Satellite Broadband Company"
- ^ "Australia Business Listing". AUS61 Business. Retrieved 24 January 2017.
- ^ "BROWNS CREEK GOLD NL BWC – Profile and Status | deListed Australia". www.delisted.com.au. Retrieved 24 January 2017.
- ^ "MultiEmedia goes multinational". ARN. Retrieved 28 January 2017.
- ^ "How Vizard pocketed $1.1m gazumping Telstra". Crikey. 7 July 2005. Retrieved 24 January 2017.
- ^ "MultiEmedia goes multinational". ARN. Retrieved 24 January 2017.
- ^ "High on E . . . from top of the town to top of the world". ARN. Retrieved 24 January 2017.
- ^ "New Skies Satellites completes sale of Australian subsidiary to Multiemedia Limited". www.sec.gov. Retrieved 13 February 2017.
- ^ "NewSat Emerges on Shareholders' Vote – Media Releases – IDG Communications – Australia". www.idg.com.au. Retrieved 13 February 2017.
- ^ "Satellite leader placed in administration". www.smh.com.au. Archived from the original on 24 September 2015.
- ^ "NewSat's Lockheed Martin satellite contract cancelled". iTnews. Retrieved 24 January 2017.
- ^ "SpeedCast buys NewSat teleport sites for $12m". iTnews. Retrieved 24 January 2017.
- ^ "Multi-Million Deal for Australia's First Independent Satellite Communications Provider"
- ^ "Report on Jabiru Satellite Ltd" (PDF). www.exim.gov. Retrieved 12 February 2017.
- ^ a b "All systems go for NewSat's Jabiru-1 satellite" – The Australian, 18 February 2014 (accessed 2015-02-26)
- ^ "NewSat gets conditional waiver to continue Jabiru-1 satellite" – IT News, 25 August 2014 (accessed 2015-02-26)
- ^ "Administrators' report" (PDF). Retrieved 28 January 2017.
- ^ "NewSat defaults on $26m in overdue Lockheed payments" – IT News, 27 January 2015 (accessed 2015-02-26)
- ^ "NewSat forced to halt trading over satellite funding" – IT News, 30 March 2015 (accessed 2015-04-14)
- ^ "NewSat enters administration over troubled satellite" – IT News, 17 April 2015 (accessed 2015-04-17)
- ^ "Receivership update" (PDF). Retrieved 24 January 2017.
- ^ "NewSat CEO, CFO shown the door". www.theaustralian.com.au. 4 June 2015. Retrieved 12 February 2017.
- ^ "Satellite company NewSat to be liquidated". www.theaustralian.com.au. Retrieved 28 January 2017.
- ^ "Hackers corrupt Newsat systems". www.theaustralian.com.au. Retrieved 12 February 2017.
- ^ Danckert, Sarah (3 February 2017). "NewSat boss, chairman slapped with $270 million lawsuit". The Sydney Morning Herald. Retrieved 12 February 2017.